Case 1

ASSIGNMENT: 4 Essentials of Management

CASE :1McDonald’s : SERVING FAST FOOD AROUND THE WORLD

SOLUTIONS:

1. What opportunities and threats did McDonald’s face? How did it handle them? What alternatives could it have chosen?

Opportunities and threats faced by McDonald’s:

Opportunities:

* Market expansion was good.

* High quality menu was served for low price.

* Chain expanded to every nation.

* Acceleration of International Growth.

Threats:

* Small percentage of sales commanding large share of food market.

* Food preparation according to the country’s law.

* Purchasing power parity of customers.

How did it handle them?

* Food was prepared according to the country’s requirement.

* Staying in close touch with the customers.

* By retaining quality.

* Doing heavy promotion on the product.

* Planning an effective Competitive Strategy.

Alternatives:

* Many franchises should be started.

* Maintaining an excellent crew for the spot.

* Maintaining Quality Assurance Cell everywhere.

Solutions:

2. Why did you think that McDonald succeeded?

* McDonald succeeded because of its quality.

* Wide spread chain.

* Traditional Menu

* Customer’s Satisfaction

* Applying competitive strategy.

What strategies did it follow?

* Low price

* High quality

* Close customer’s touch

* Heavy promotion

* Franchises support

* Joint ventures.

How did these differ from its strategies in ASIA?

* Food served in spotless surroundings.

* Acceleration of International Growth

* Food taste

* Specification in menu

3. McDonald’s Philosophy

4. 'Our basic philosophy at McDonalds is to develop a collaborative approach with our suppliers. We are committed to sharing best practice with all our suppliers including the beef farmers who benefit from this commitment because it helps improve quality and increase value.' David...